Why Is Data Important for Nonprofit Management

Managing nonprofit data involves a whole lot more than simply entering numbers and sorting them. Humans live and breathe, and the kind of data nonprofits amass is different than, say, a for-profit business. Throughout a client’s time with a nonprofit, case managers perform intakes and regular evaluations, all while adjusting services and coordinating care. The data that comes from these interactions is complex, but hugely valuable. When done correctly, nonprofit data management makes it easier to evaluate program effectiveness and in turn, improve outcomes for clients.

Data illuminates nonprofit program strengths and pinpoints weaknesses

Data allows human and health services nonprofits to evaluate how much benefit a client receives from a given program. As a client works with a nonprofit, staff members and volunteers will likely take case notes that document their progress. Most nonprofits have specific goals in mind for how a client should move through programs and utilize services. As care coordinators track a client’s journey, it can become clearer what methods and services are effective and what might need to be improved.

By identifying what’s working and what’s not, nonprofits can rework budgets and make dollars stretch further.

Funders care about proof of impact, and data demonstrates that beautifully

Federal and foundation grantmakers want to see social return on investment. Client success stories are best illustrated with data. Rather than simply saying your nonprofit’s program helps people, demonstrate your organization’s impact with metrics. Combining hard data with qualitative success stories makes for compelling grant proposals, year-end reports, and improves the quality of fundraising content.

Funders often have highly detailed requirements for what information they need nonprofits to report out. These requirements can apply to the database itself, and also influence what kinds of metrics nonprofits must present to show proof of impact. By collecting the right data upfront and reporting on that data correctly, you can up your chances of receiving funding.

Because nonprofit data is so intricate, a specialized solution makes all the difference

It’s relatively easy to track things that are easily measured. A client’s cost of care, duration in a program, are all quantitative data points. But client stories are just as important as hard numbers, and human experiences simply can’t be counted. A client’s overall wellbeing, happiness, and ability to thrive need to be assessed with a human touch. Using a solution that’s built to handle both quantitative and qualitative data can help you better understand your programs and your clients.